Leave Travel Allowance
This query is : Resolved
Rahul Rana
(Querist)
03 December 2008
Hallo Expert,
My organisation is paying Rs.650/-P.M as Leave traval allowance to each employees ,problem is that we are not giving exemption to employees, this allowance is adding in the income of employees but emloyees are saying if they submit bills of travel in the office then they can get exemption or not.and what is the saction for exemption and how much amount will be exempted.
Thanks,
Rahul Rana
My organisation is paying Rs.650/-P.M as Leave traval allowance to each employees ,problem is that we are not giving exemption to employees, this allowance is adding in the income of employees but emloyees are saying if they submit bills of travel in the office then they can get exemption or not.and what is the saction for exemption and how much amount will be exempted.
Thanks,
Rahul Rana
Rajdeep Pawar
(Expert)
03 December 2008
Fixed Leave Travel Allowance is fully taxable in the hands of employees.
But under section 10(5),an employee is entitled to exemption in respect of the value of travel concession or assistance received by or due to him from his employer or former employer for himself and his family in connection with his proceeding- (a) on leave to any place in India or (b) to any place in india after retirement from service or after the termination of his service. This exemption will be subject to other conditions mentioned in section 10(5).
In present case you change the nature of allowance to the benefit of employees.
But under section 10(5),an employee is entitled to exemption in respect of the value of travel concession or assistance received by or due to him from his employer or former employer for himself and his family in connection with his proceeding- (a) on leave to any place in India or (b) to any place in india after retirement from service or after the termination of his service. This exemption will be subject to other conditions mentioned in section 10(5).
In present case you change the nature of allowance to the benefit of employees.
O.D.SHARMA
(Expert)
03 December 2008
LTC generally paid on yearly basis & Block year is tax free on submission of Train/ Nationalised airlines Plain tickets,Monthly on this LTC payment cannot be tax free.So amend the salary structure accordingly to get benafits.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
